16. 3. 87 Official Journal of the European Communities No C 68/17
2.7.5. The Community ought to promote the setting up
of professional advisory services for LEI development, and
build on and further encourage the useful 'networking' and
information role of ELISE. Better use should also be made of
guidance and written material available.
2.7.6. All persons employed or self-employed in LEIs
ought to have access to State support in the form of
unemployment benefit and other social insurance benefits
both in cases of failure and of temporary inactivity.
2.7.7. Workers' take-overs of insolvent or bankrupt
enterprises could be facilitated by formally involving them in
the liquidation procedures and by preventing an
(uneconomic) shut-down of a factory by means of a jointly
agreed care and maintenance contract procedure or through
appropriate legal procedures in court, the interests of all
parties concerned being taken into account with prime
consideration being to maintain viable jobs.
Done at Brussels, 17 November 1986.
1. Introduction
1.1. The Economic and Social Committee has for a
number of years concerned itself with the subject of
integrated development operations, in the firm belief that
underdeveloped and particularly run-down areas need
coordinated integrated help from various Community
instruments and national development measures.
1.2. On 30 April 1980 the Committee unanimously
approved a report by Mr Bornard on the Lorraine region.
1.3. In 1982 Mr Bornard produced another report, on
integrated operations as a whole. The. main document dealt
2.7.8. The role of the social partners in stimulating LEIs
and ensuring proper working conditions could be organized
through the setting up, Europe-wide, of local and regional
tripartite committees composed of:
— employers, workers and representatives of other
socio-professional groups;
— local government representatives;
— local prime mover groups and representatives of LEI
projects.
Such Committees could jointly aid, advise and constructively
monitor the progress of LEIs emerging in their own
communities, also as regards any ancillary employment
resulting from large-scale infrastructure schemes provided
for by the Council to support production activities and
employment.
The Chairman
of the Economic and Social Committee
Alfons MARGOT
with the general problems facing integrated development
operations, whilst the appendices, drawn up by
co-rapporteurs Mr Masprone(1), Mr Hall (2), Mr
Ognibene (3) and Mr Kolbenschlag (4) presented an analysis
of the operations already underway in Naples and Belfast and
examined a number of proposed schemes for other areas.
1.4. Following a proposal by various members of the
Section for Regional Development, the Committee
subsequently produced an information report on an
(») On Naples.
(2) On Belfast.
(3) On disadvantaged rural areas.
(4) On the Bavarian forest.
Opinion on the criteria and efficiency of integrated operations
(87/C 68/10)
No C 68/18 Official Journal of the European Communities 16. 3. 87
integrated operation for the County of Clwyd, North Wales
(rapporteur: Mr Regaldo).
1.5. In April 1985, acting under the fourth paragraph of
Article 20 of its Rules of Procedure, the Committee
authorized the Section for Regional Development to draw up
an own-initiative opinion on the criteria and efficiency of
integrated operations on the basis of the studies mentioned
above.
1.6. The Section adopted its opinion on 12 September
1986, in the light of the report by Mr Delia Croce.
At its 242nd plenary session (meeting of 17 December 1986),
the Committee adopted the following opinion with two
dissenting votes and two abstentions.
2. Integrated operations implemented so far
2.1. The integrated operations in Naples and Belfast,
begun several years ago on an experimental basis, are the
only operations which are currently being implemented. In
addition to these two pilot operations which are carried out
mainly under the ERDF, we should also mention the
'integrated development programmes' in rural areas which
mainly come under the EAGGF; these are not covered in the
present opinion.
2.2. The Commission has on several occasions stated its
intention to introduce more integrated operations, but has as
yet selected no further areas for action.
2.3. In the light inter alia of the experiences in Belfast and
Naples, the Committee feels that integrated operations are an
effective instrument for promoting the development of
certain areas. A precondition for their success is the
involvement of the various local and national authorities,
with use being made of all the various Community funds and
the contributions provided for in national legislation. The
aim of the integrated operations must be the implementation
of a programme drawn up with the all-important
cooperation of the socio-economic interest groups, taking
account both of the real needs of the areas involved and of the
Community interest.
2.4. It is therefore necessary to advance beyond the
pilot-scheme stage to a point where integrated operations
become an accepted instrument of regional development.
This instrument should be reserved for particular cases
selected on the basis of established criteria.
3. Legal basis of integrated development operations
3.1. Article 34 of the new ERDF Regulation (adopted in
1984), dealing with integrated development operations,
demonstrates their importance by giving high priority to
ERDF financing of investment and measures in this area.
3.2. An integrated operation, according to Article 34,
comprises a coherent set of public and private-sector
measures and investments, within a limited geographical
area affected by particularly serious development lag or
industrial or urban decline. An essential feature of integrated
operations is the joint use of various structural financial
instruments coordinated by the Community and by the
national and local authorities.
3.3. As it stands, Article 34 provides only general
guidance; it could usefully be expanded and made more
precise.
3.4. The Committee urges the Commission to carry out
its frequently avowed intention to present a draft Regulation
on integrated operations, even though more recently it seems
to have modified its position and now prefers to speak of an
integrated approach in general.
3.5. What is called for is not only a more precise
definition of the legal basis but also improvements to the
rules governing procedure and administration.
The rules on integrated operations should therefore lay down
a proper procedural code to be observed both for the
planning stage and for the launching and administration of
the operations.
3.6. On 2 September 1986, the Commission presented an
Information Memo to the Council and the European
Parliament, entitled 'procedures and content for the
implementation of an integrated approach'.
This document is of special interest, and is consistent with
some of the guidelines suggested by the Committee in the
past. However, the document speaks throughout of
'integrated approach' rather than integrated development
operation. Nevertheless, since it repeats the definition given
in Article 34, we may deduce that it does refer principally to
integrated operations.
It would, however, be useful to make sure that everything is
crystal clear, including the terminology.
16. 3. 87 Official Journal of the European Communities No C 68/19
Lastly, the Committee asks to be formally consulted on all
the measures taken or planned to implement the integrated
approach.
4. Financing of the integrated operations
4 .1 . Integrated operations call for the economic and
financial assistance of the Member States (including, where
appropriate, the regional and local authorities), the
Community's structural funds, and the EIB.
4.2. The Community's financial support should
supplement, not replace, that coming from the national and
local authorities.
4.3. The Community's financial contribution can be
provided through the existing Funds, provided that use of
them is coordinated. The provisions governing allocations
and supervision must be standardized, and commitments
must be made for longer periods than at present to allow for
the time-span of the integrated operations and ensure
continuity.
4.4. The rules governing the structural funds need to be
changed to allow coordination and greater flexibility, and to
provide for assistance in cases not covered at present.
4.5. Without prejudice to the content of the Single Act, an
additional budget line should be provided for the integrated
operations, similar to those provided for the Integrated
Mediterranean Programmes (IMPs) (the existing budget line
is only used for financing the feasibility studies).
4.6. Whilst not being in any sense negligible, and whilst
providing an important stimulus to planning and
coordination, the Community's financial contributions to
the integrated operations in Belfast and Naples have
remained modest both in absolute terms and as a percentage
of the overall funding.
4.7. The Committee hopes that the proportion of
Community to national financing will be higher in future
integrated operations. Such an increase would be likely to
have a disproportionately favourable impact on the
mobilization of local resources.
4.8. In stressing the need to increase the percentage of
integrated operation financing coming from the Community
funds, we must reiterate the Committee's abiding view that
the sums allocated to the structural funds are inadequate.
4.9. The current situation of the Community budget gives
further cause for concern; as is clear from the report on the
implementation of structural interventions in 1986, this has
an adverse effect on the ERDF.
5. Integrated assistance from the structural funds
5.1. The integrated operations have hitherto received
financial aid from the ERDF and, to a lesser extent, the Social
Fund. The EAGGF — Guidance Section — has been tapped
to only a minor extent and without integration, except in the
integrated development programmes.
5.2. However, it would be unrealistic to underestimate
the obstacles which make it difficult under current practice to
integrate the EAGGF — Guidance Fund — with the other
structural funds. We must thus strongly emphasize the fact
that the Commission Green Paper itself recognized the need
to coordinate agricultural measures with regional
development measures.
5.3. The Commission recognizes the need to concentrate
all the available funds on general goals which concern the
whole regional economy rather than just agriculture, and
states that it is convinced of the usefulness of an integrated
approach; accordingly, EAGGF support should be an
accepted instrument for integrated operations in areas with
an important agricultural sector.
5.4. Allocation of more funds to the EAGGF — Guidance
Section — would help to make measures more effective.
6. The planning of integrated operations
6.1. Each integrated operation should be based on a
programme for a coherent set of measures and
public/private-sector investments calculated to have a
substantial effect on underdevelopment and decay in the area
in question.
6.2. In drawing-up an overall programme it should be
remembered that an integrated operation is a major event
with valuable spin-off, and not just a battery of seperate
projects.
The overall programme should therefore specify in detail and
quantify the benefits which are expected as a direct result of
the integration of action — benefits which will be
substantially greater than those obtainable from isolated
Community measures.
6.3. For this reason the programme should provide for
joint use of the various national financing instruments and
the Community Funds.
6.4. These financing instruments should also be
employed in a way which will produce a multiplier effect on
private-sector investment.
6.5. Right from the planning stage, there is a clear need
for full collaboration and joint efforts from all the
No C 68/20 Official Journal of the European Communities 16. 3. 87
institutions, agencies, organizations and operators who are
involved in the project.
7. The role of the socio-economic organizations and the
presence of the Community institutions
7.1. In both Naples and Belfast, the socio-economic
organizations have been little involved in the integrated
operations, and this has been a limiting factor.
7.2. This contrasts with the major contribution from
Community representatives, bearing witness to the
Community's concern for the success of the operations and
above all making it clear that the programmes are part of a
European regional development policy. The Commission
representatives have also provided important technical
back-up on the use of the structural funds.
7.3. It is thus clear that the Community institutions and
the socio-economic organizations should play an active part
right from the planning stage.
7.4. All the relevant economic and social interest groups
must be consulted during the planning stage.
Whilst not being binding, their opinion should be given due
consideration when projects are being chosen.
8. Administration of the integrated operations
8.1. All aspects of the planning, supervision and
administration of the integrated operations are of vital
importance.
8.2. The administration of each integrated operation
should be under the constant supervision of a consultative
committee which should include representatives of all the
organizations and agencies involved. This committee would
check that the various measures followed the aims of the
original plan and decide whether any changes or adjustments
were necessary. It would also periodically check the actual
results achieved.
8.3. The integrated operations should be administered by
bodies or agencies endowed with the structures needed to
manage a complex instrument of this type.
Whilst taking the form of public institutions, or governed
by public law, these bodies or agencies should have an
efficient administrative and organizational set-up and
possess an operational and managerial capacity similar to
that of modern private-sector firms.
8.4. The success of integrated operations depends to a
large extent on good relations between local and national
authorities and on satisfactory liaison between them and the
Community bodies. The administration of the integrated
operations, the activities of the bodies or agencies responsible
for administration, and the activities of the supervisory
consultative committees must all be governed by the
over-riding need for harmonious relations between the
various authorities and by the need for proper integration of
the measures. The full commitment of the Member States is
vital for this.
9. The essence and content of the integrated operations
9.1. The integrated operations must be geared to the
economic and social development of the areas concerned.
This mainly means increasing imployment and gross
domestic product, raising living standards and improving
living conditions.
9.2. The most important aim should be to improve the
employment situation by increasing the number of
permanent jobs. To support this aim, the profits on the
capital invested in the operations should be reinvested
locally, thus giving a sustained boost to employment.
9.3. Multi-sectoral measures involving a wide range of
actions designed to achieve coordinated results are of great
importance in integrated operations.
9.4. The aid should be satisfactorily distributed between
infrastructures, manufacturing, the tertiary sector and
agriculture. Due attention should also be given to the
protection of the environment, the countryside and our
cultural heritage. Finally, sufficient funds should be set aside
for vocational training so that workers' qualifications and
skills can be brought up to the levels required by the
development planned.
9.5. In underdeveloped or decaying areas such as those
eligible for integrated operations, there is an undeniable need
to focus particular attention on the housing problem.
Housing programmes should not, however, be allowed to
swallow up most of the funds since this would affect
investment in productive sectors, thereby perhaps
jeopardizing the objectives of the integrated operations.
9.6. As part of the major drive to create lasting
employment, steps must be taken to provide secure
manufacturing or service jobs for workers temporarily
employed in the construction of infrastructure and factories
or in the special housing programmes.
16. 3. 87 Official Journal of the European Communities No C 68/21
10. Geographical extent and time-span of integrated
operations
10.1. In the planning of integrated operation
programmes provision should be made for their
implementation over a medium or long-term period. For this
to be possible, however, certain guarantees are needed.
As noted above, these guarantees concern the rules and
procedures governing the integrated operations, as well as
the assistance from the structural funds, the coordination of
the various Commission Directorates-General, and the
administrative structure of the Commission services dealing
with the integrated operations.
When an integrated operation is decided on, all those
involved should be able to rely on it being carried out as
scheduled, without undue red tape or procedural
complications, or delays in the allocation of funds.
10.2. The geographical delimitation of the areas chosen is
also a delicate and complex problem, as the project must
cover a homogeneous area whilst sufficiently involving all the
territory.
The implementation of the integrated operation must be
clearly visible for all the residents of the area
11. Final comments
11.1. Detailed appraisals of the two integrated
operations in Belfast and Naples appear in the Section's
report (CES 706/86 fin). The Committee's assessment is
basically favourable, although much remains to be done to
achieve the full promise of this method.
11.2 The results of the two pilot operations should
encourage the Community to make further use of ERDF
Article 34, perhaps extending operations to non-urban areas.
Island regions, upland areas and underdeveloped rural areas
deserve special attention.
Also of special interest are some structurally weak border
areas, which offer real potential for promoting investment.
Integrated operations should play a part in helping to
improve the organization of national measures on both sides
of the border; where possible a coordinating role should be
played by supranational bodies.
Done at Brussels, 17 December 1986.
11.3. The legal basis of the integrated operations needs to
be expanded and more clearly defined. The Commission
information memo of 2 September 1986 should receive a
swift follow-up. The Committee notes that the Commission
has already recognized this shortcoming, by creating the new
General Directorate XXII specifically in charge of
coordinating structural instruments. It is to be hoped that
this new department will have the authority to carry out this
task effectively.
Some five years ago the Committee offered the Commission
some suggestions for improving the legal basis of the
integrated operations. Article 34 of the new ERDF
Regulation adopted a good number of these suggestions, and
has clarified the areas which the measures are to cover.
11.4. Stress must be laid urgently on the need for
appropriate further aid from all the structural funds. The
regulations governing these funds should be adapted to the
integrated instrument.
It is only sensible that any coordinated programme involving
a community should apply the various available funds in
concert, as this is the only way to achieve real impact. The
circumstances for adoption of an integrated operation and of
the requirements for submission of a proposal will also need
to be clearly specified.
11.5. Full involvement and commitment from the local,
national and Community authorities, along with all the
socio-economic interest groups, is vital for the integrated
operations.
11.6. In neither Naples nor Belfast does there seem to
have been a significant improvement in the employment
situation. Hence the need to stress again that the main aim of
an integrated operation should be a significant long-term
increase in additional job opportunities.
11.7. Finally, the Committee points out that in preparing
this opinion it has been subject to constraints owing to the
deadline and the need for an in-depth analysis of the
experience in Belfast and Naples.
However, the Committee hopes to be able to continue its
work on integrated operations and deal specifically with the
situation in certain areas where feasibility studies are
underway or planned (e.g. the Bavarian forest and the Island
of Reunion).
The Chairman
of the Economic and Social Committee
Alfons MARGOT
Full & Egal Universal Law Academy